Scottish Tories in turmoil as leader resigns

The Scottish Conservatives suffered a blow to their slowly reviving political credibility last night when their leader, David McLetchie, was forced to resign over an expenses row.

The MSP resigned days after he faced party members at the quarterly meeting of the Scottish Tories national council, where his taxi bill on business connected with the Holyrood parliament was discussed.

"I recognise that the recent coverage surrounding my expense claims has been damaging and is a major distraction from our efforts to rebuild support for the party in the country," he said in a statement. "Accordingly, it is right that I stand down as leader."

The crisis hits the Scottish Tories as they try to rebuild their base after being marginalised after the creation of the Scottish parliament.

They have been edging towards a position which might see them pledge to use the Scottish parliament's tax-varying powers to cut income tax ahead of the 2007 elections. That tactic might work in Scotland, at the risk of alarming English unionist Tories who fear it might highlight the generous grants Scots get from the Treasury in London. Mr McLetchie's fall puts a question mark against that revival.

Out of more than £11,000 in taxi claims, £5,000 was for journeys not specified in detail, and Mr McLetchie's critics in the regional media have questioned the legitimacy of some of them.

Mr McLetchie, leader for the past six years, has denied wrongdoing but has promised to repay the money. He also thanked his colleagues for their support. "I also reiterate my commitment to fully reimburse any expenses which I have claimed in error," he said.